New Prime Minister should ‘incentivise business investment’

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25 Jul 19

A number of business groups have set out their wishlists for policy changes to be put in place by the new Prime Minister.

Boris Johnson became Prime Minister on 24 July 2019, and has made several changes to cabinet roles.

This included the appointment of Sajid Javid as Chancellor, who will be responsible for giving the next Budget speech and announcing new changes to taxation.

Among other calls for policy changes, a number of business groups shared the view that the new Prime Minister should bring in measures to incentivise business investment.

Recommendations from the British Chambers of Commerce include introducing a one-year moratorium on policy measures that increase business costs, and rates holidays on new property builds and improvements.

The Institute of Directors said the enterprise investment scheme (EIS) and seed enterprise investment scheme (SEIS) reliefs should be improved, and that a new enhanced capital allowance should be introduced for productivity-enhancing spending.

Meanwhile, the Federation of Small Businesses said the Prime Minister should reform the business rates system and help small businesses with employment costs.

Mike Cherry, national chairman of the FSB, said:

"We need to see a real sense of urgency from this new Prime Minister when it comes to creating a pro-enterprise environment.

"As things stand, small business confidence is at rock-bottom: political uncertainty has left us unable to invest, grow and plan for the future.

"The UK has long been one of the best places in the world to do business. It's crucial that we keep it that way."